How does our SOA measure up?? a bit worried about debts

Tommymax81

Hi Violalass,

I take your point on board and perhaps I could swallow my pride and let her pay off the CC debt but I have to admit I still feel uncomfortable with it and would feel much happier paying it off at 0%.

MFWannabe

I agree with Violalass; you are a couple and a have a baby together. You should share everything. Definitely pay off the 20% APR card with 3k of the savings; you should be able to save this amount again in a few months.
You don't say when the other cc on 0% ends? Are you going to be able to pay this off by the time it ends? Make sure you pay off enough each month to make this happen.
You say it's your debt but some of it was accumalated doing up your house (joint house?) = joint debt. On the baby (belongs to both of you) = joint debt.
Just because the debt is in your name does not mean it is your debt.
Also yes you have good incomes but what would happen if the worst possible scenario happened and one of you lost your job? You need to be able to plan ahead and build a future which means you could manage on one of your wages IF the worst case scenario ever happened. You need to get rid of these debts now, then plan ahead to save enough to move house etc.

Tommymax81

Hi,

the other credit card is 0% till January. I definitely won't have cleared it by then but will switch to another 0%. I agree with all of your comments and definitely have some thinking to do.

We both work in education and have stable jobs but if one of us were to lose our jobs then our manageable debts would suddenly become very unmanageable!!!

Tommymax81

Morning all,

I have managed to transfer the £3000 CC onto another 0% deal. I am still considering taking the advice and paying it off in full but at least this gives me some time to think without accruing more interest.

I am going to post a new SOA later with clothing costs, presents etc all included

Thanks for all the help so far

[Deleted User]

Tommymax81 wrote: »

Morning all,

I have managed to transfer the £3000 CC onto another 0% deal. I am still considering taking the advice and paying it off in full but at least this gives me some time to think without accruing more interest.

I am going to post a new SOA later with clothing costs, presents etc all included

Thanks for all the help so far

Not worthwhile paying it off in full if it 0% now. Overpay on the debt that's costing you the most in interest. So, that would be the 9% debt?

ViolaLass

Domino9 wrote: »

Not worthwhile paying it off in full if it 0% now. Overpay on the debt that's costing you the most in interest. So, that would be the 9% debt?

It's less than £4k, pay it off completely.

Barbeduk

Well done for getting a 0% deal but I'd now cut back on anything you can to get those cards gone, chasing the next 0% can become a habit. I did it for nearly 6 years!

Perhaps take a peek at the mortgage free wannabe board and see what you could be doing with that money once the loans and cc are gone.

mrsb83_2

Even with a decent income, I think your debt is very high and needs to be urgently reduced. If either of you were to lose your jobs or were unable to work then you'd be in serious difficulties.

Also, you say that the debt won't increase, but if you don't aggressively reduce it then it's going to be around for a long time.

My debts were as high as yours and it'll take a total of 2 years of serious economising to clear them completely. Whilst I'm not suggesting that you try to get it done that quickly, you do need to make a concerted effort to ensure your family's security.

natlie

ViolaLass wrote: »

You have a baby together, aren't you an 'us' by now? I would never let my husband have debts at the level and interest rate that you do when I had the money to pay them off.

Your partner is clearly motivated to save, she's doing it. Couldn't you push yourself to be equally motivated once the debts have gone? At the moment, you're paying for the privilege of her having savings.

I disagree

Getting married/having a child does not make you an us you are still an individual and if you choose to keep your finances seperate then I believe you should be entitled to do so.

I think it is unfair for you partner to pay off your debts and I think its great that you have not expected her to do so.

I think your debt is scary but manageable and good luck paying it off
Nat

afly

Hi Tommy,

Yeah you're both in it together but I totally understand what you mean.

Instead, think of it this way. By not clearing some of the debt you are costing yourself interest per month for nothing in return. This interest is money you could of been using to contribute to savings yourself.

'Borrow' her savings (to an amount she is happy to lend you) and agree to pay back to her the amounts you are clearing on the CC's/loans now (when the CC terms expire). Essentially she would be giving you a 0% loan (if you want to have a bit of fun, make it 1% and let her spend that on treats for herself etc) You could make it a formal loan if that would feel better for you both.

By doing so, as a household, you will have more money over the long term. Keeping the interest you would otherwise be giving to creditors, which is a better situation for all three of you :T

I'm also one who keeps some emergency savings despite having debts but losing your job and still having huge credit card bills to pay isn't much fun either. A better credit situation for both of you, may be just as able to help you in short term emergencies like that. That's the beauty of there being 2 of you. If you have no savings and one of you loses their job, the other, with a decent credit rating, could probably get a sizable loan to help over the period. This approach means you're only paying interest when you absolutely have to

Hope the above makes sense